SigmaTel, Inc. Files Formal Complaint with ITC Against Actions Semiconductor for MP3 Player Technology Patent Infringement

AUSTIN, Texas--(BUSINESS WIRE)--March 14, 2005--SigmaTel, Inc. (NASDAQ:SGTL), the Austin, Texas-based market leader for portable MP3 player technologies, today officially filed a formal complaint with the International Trade Commission (ITC) against Actions Semiconductor, based in Zhuhai, Guangdong, China, seeking to halt the infringement of SigmaTel's intellectual property rights.

SigmaTel asserts that Actions Semiconductor infringed multiple SigmaTel patents in the design of System-on-Chip controllers for the Portable Digital Music player market. Actions' products have recently begun shipping into the United States retail market as components of MP3 players. SigmaTel seeks to stop shipment of products into the U.S. that use Actions Semiconductor integrated circuits or "ICs."

With this filing, SigmaTel requests that the ITC institute an immediate investigation against Actions Semiconductor based on the importation of the infringing MP3 ICs. SigmaTel has asked the ITC to grant all possible relief, including an exclusionary order, enforced by U.S. Customs, prohibiting the importation into the U.S. of MP3 players that contain Actions' MP3 ICs. Further, SigmaTel has asked the ITC to issue a cease-and-desist order which could require retailers and distributors to remove from their shelves and destroy all MP3 players containing Actions infringing MP3 ICs.

"When SigmaTel finds that our patents have been infringed, we will take whatever measures are needed to gain relief from the infraction," said Ron Edgerton, chief executive officer and president of SigmaTel. "Our customers, our business and the MP3 player market space in general are each hurt when intellectual property rights are disregarded by the competition."

About SigmaTel:

SigmaTel, Inc. a fabless semiconductor company headquartered in Austin, Texas, designs, develops, and markets proprietary, analog intensive, mixed-signal ICs for a variety of products in the consumer electronics and computing markets, including portable compressed audio players, such as MP3 players, notebook and desktop PCs, DVD players, digital televisions, and set-top boxes. SigmaTel provides complete, system-level solutions that include highly-integrated ICs, customizable firmware and software, software development tools, reference designs, and applications support. The Company's focus is on providing system-level solutions that enable customers to rapidly introduce and offer electronic products that are small, light-weight, power-efficient, reliable, and cost-effective. SigmaTel is ISO 9001:2000 certified and is committed to providing customers with high performance, quality products along with superior customer service.

Cautionary Language:

This press release contains forward-looking statements based on current SigmaTel expectations. The words "expect," "will," "should," "would," "anticipate," "project," "outlook," "believe," "intend," and similar phrases as they relate to SigmaTel or future events are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of SigmaTel, but are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. A number of important factors could cause actual results to differ materially from those in the forward-looking statements, and there will be events in the future that SigmaTel is not able to accurately predict or control. For a discussion of factors that could impact SigmaTel's financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to recent SigmaTel filings with the SEC, particularly the 424(b)(4) final prospectuses filed September 19, 2003 and February 19, 2004, the Form 10-Qs that were filed on October 29, 2003, April 20, 2004, July 20, 2004 and October 19, 2004, the Form 10-K that was filed on February 17, 2004, and the Form 10-K that SigmaTel filed February 8, 2005 covering the annual period ended December 31, 2004.

All products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders. All specifications may be changed without notice.

SOURCE: SigmaTel, Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SigmaTel, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.